Capitalmind
Capitalmind
Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial
Stocks

Yes Bank Grows Profits 33%: Result Analysis

Yes-Bank-Results.png

 
In the quarter ended June 2016, Yes bank has done very well; it grew profits about 33% from 551 cr. to 732 cr. in a year.

  • Revenues were up over 25% with interest income up 18%, and other income up a whopping 65%.
  • Operating profit went up from 908 cr. to 1307 cr., and increase of 44%.
  • Provisions more than doubled to 206 cr. from 98 cr. as NPAs expanded from 368 cr. to 844 cr.
  • NPA ratios are  0.79% (gross) and 0.29% (net). While this has been going up, it’s a very small percentage of their assets.
  • Treasury profits grew more than 20% while corporate banking profits went up a whopping 63%.
  • Even through retail income went up more than 50%, there were much higher losses: segment losses for retail were at 138 cr. versus a loss of 33 cr. last year.
  • ROE is at 20.7% which is decent, but this is a mega-leveraged business so one has to be careful.
  • They will open a mutual fund soon – they have the SEBI approval to set up an AMC.
  • At the market price of 1200, they are still valued at less than 20x P/E as their last twelve month EPS is about 64.

Click the image for the full press release.
Yes Bank Results
The stock didn’t respond much to the press release of the information, but it has been a weak day indeed.
In the private banks, Yes bank seems to have the strongest results posted. Let us see how the public banks perform.